May 8, 2009

According to IMB Piracy attacks almost doubled in 2009 first quarter.Pirating in the Gulf of Aden, transit way for a third of the world's commerce, set a record of 120 attacks in 2008. Estimates of ransom payments vary and are estimated at around $40 million last year.

In the business world, risks create opportunities, so you shouldn't be surprised to know that the scourge of piracy on the high seas has led to a nifty innovation: pirate insurance.

Chicago-based Aon Corp. and other companies have begun offering policies to guard against the loss of ships, cargo or crews to pirates.

If shippers become more willing to make ransom payments because they'll have insurance to cover losses, it may only add to the economic booty that tempts Somalis into piracy in the first place.

One of the lasting lessons of the piracy epidemic is how some of the world's most powerful naval forces have been almost powerless against speedboat-driving outlaws from one of the world's broken-down states. It will be tough to solve the piracy problem so long as anarchy and economic deprivation persist in Somalia.

Nevertheless piracy insurance business is high profitable for companies like AON. So profitable that according to Workers World there are some pirates who don’t use firearms to seize vessels on the high seas.

IMBThe ICC International Maritime Bureau (IMB) is a specialised division of the International Chamber Of Commerce (ICC). The IMB is a non-profit making organisation to act as a focal point in the fight against all types of maritime crime and malpractice. IMB’s main task is to protect the integrity of international trade by seeking out fraud and malpractice.

IMB Live Piracy Map 2009This map shows all the piracy and armed robbery incidents reported to the IMB Piracy Reporting Centre during 2009.

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